Reconstruction Analysis Illustration Vatter Corporation Comparative Balance Sheet As of December 31 Year 2 Increase (S thousands) Year 1 Year 2 decrease) Assets Current assets Cash $240 120 $(120) Receivables 360 450 90 Inventories 750 1.053 303 Total current assets $1,350 $1,623 Fixed assets 4.500 6.438 1,938 Accumulated depreciation (1,500 (1,740) (240 Investment in affiliate 1.000 1.05 50 Goodwill 950 980 30 Total assets $6,300 8,351 2,051 Liabilities and Equity Accounts payable 360 590 230 Bonds payable 300 700 400 Deferred income taxes 240 260 20 Capital stock 2,400 3,200 800 Additional paid-in capital 900 1,300 400 Retained earnings 2.100 2301 Total liabilities and equity 6.300 $8,351 $2,051
Vatter Corporation Comparative Balance Sheet As of December 31, Year 2 Increase ($ thousands) Year 1 Year 2 (decrease) Assets Current assets: Cash $ 240 $ 120 $ (120) Receivables 360 450 90 Inventories 750 1,053 303 Total current assets $ 1,350 $ 1,623 $ 273 Fixed assets 4,500 6,438 1,938 Accumulated depreciation (1,500) (1,740) (240) Investment in affiliate 1,000 1,05 50 Goodwill 950 980 30 Total assets $ 6,300 $ 8,351 $ 2,051 Liabilities and Equity Accounts payable $ 360 $ 590 $ 230 Bonds payable 300 700 400 Deferred income taxes 240 260 20 Capital stock 2,400 3,200 800 Additional paid-in capital 900 1,300 400 Retained earnings 2,100 2,301 201 Total liabilities and equity $ 6,300 $ 8,351 $ 2,051 Reconstruction Analysis Illustration
Reconstruction Analysis Illustration Vatter Corporati。n Income Statement (s thousands Year Ended December 31. Year 2 sales $19,950 Cost of goods sold(includes $360 of depreciation) Gross profit $8,849 General, selling, and administrative expenses $7,000 Amortization of goodwill 30 7030 $1,819 Equity in earnings of unconsolidated affiliate 50 Gain on sale of fixed assets Income before taxes Income taxes. Current 900 Deferred 20 Net income 951 *No dividends received
Vatter Corporation Income Statement ($ thousands) Year Ended December 31, Year 2 Sales $19,950 Cost of goods sold (includes $360 of depreciation) 11,101 Gross profit $ 8,849 General, selling, and administrative expenses $ 7,000 Amortization of goodwill 30 7,030 $ 1,819 Equity in earnings of unconsolidated affiliate* 50 Gain on sale of fixed assets 2 Income before taxes $ 1,871 Income taxes: Current 900 Deferred 20 920 Net income $ 951 *No dividends received. Reconstruction Analysis Illustration